As part of its effort to “get ahead of the curve,” a major hedge fund group has issued a new set of best practices guidelines for the industry.

The Managed Funds Association, updating its guidelines for the first time in two years, calls on hedge funds to set up valuation committees and utilize outside valuation experts to ensure proper, independent valuing of hedge fund assets. In addition, it suggests that hedge funds provide audited annual financial results to investors, as well as demanding monthly reports from counterparties in derivatives transactions.

The MFA has also issued a set of sample questions for prospective investors to use when investigating hedge funds.

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